Net Neutrality Lawsuit Delays Lifeline Revamp

Net Neutrality Lawsuit Delays Lifeline Revamp

Fierce Telecom

By Samantha Bookman | October 30, 2015

The move to extend low-cost broadband services to Lifeline recipients continues to draw controversy, with a lawsuit over net neutrality rules delaying the FCC from making a decision on whether to require Universal Service Fund fees of Internet service providers. Proponents of a proposed low-cost broadband option, meanwhile, are continuing to try and convince the commission to move ahead on the issue.

Currently, telecom carriers are required to pay into the USF -- fees that are typically tacked onto consumers' telephone bills to cover the cost. The USF provides basic voice service to consumers with limited income through the federal Lifeline program. With the FCC's net neutrality rules classifying broadband providers as telecommunications services, it's likely that ISPs will need to pay USF fees as well.

However, the FCC has so far delayed making a decision as to whether ISPs will need to pay USF fees as it looks for "more certainty" in its net neutrality decision, according to Commissioner Jessica Rosenworcel, speaking to the Senate Commerce Committee this week.